The N12 Notice to End Tenancy (Landlord's Own Use) is perhaps the most scrutinized form in Ontario's rental law system. Unlike other termination notices, the N12 requires landlords to meet strict "good faith" requirements and provide mandatory compensation, while tenants can seek substantial penalties for bad faith evictions. A single misstep can result not only in a dismissed application but also significant financial liability.
Based on extensive analysis of Landlord and Tenant Board (LTB) decisions, this guide reveals the critical requirements for valid N12 notices and the costly mistakes that lead to bad faith findings and substantial penalties.
Understanding the N12 Notice
The N12 notice allows landlords to terminate tenancies when they, their spouse, children, parents, or their spouse's children or parents require the rental unit for residential occupation. The notice can also be used when a purchaser or their qualifying family member requires the unit.
Key Legal Requirements
For an N12 notice to be valid, landlords must:
- Have a genuine good faith intention for personal use
- Provide at least 60 days' notice
- Pay one month's rent as compensation
- Intend to occupy the unit for at least one year
- Serve proper notice with accurate information
The Good Faith Standard
The "good faith" requirement is the cornerstone of N12 validity. Courts examine whether the landlord genuinely intends the stated use or is using the notice for other purposes, such as:
- Removing tenants to increase rent
- Avoiding maintenance obligations
- Retaliating against tenant complaints
- Facilitating property sale or renovation
The Most Critical N12 Notice Errors
1. Lack of Good Faith Intention
The Error: Serving an N12 notice without genuine intention for personal use.
In A.S.L-and-#.O.I.-v-V.T-20180226, "The Landlord has not met the good faith requirement for the N12 notice. The evidence suggests the Landlord plans to demolish the property rather than move in themselves."
The Fix:
- Ensure genuine intention to occupy the unit for at least one year
- Document the reasons for requiring the unit
- Avoid serving N12 notices for ulterior motives
- Be prepared to prove your intention at the hearing
2. Failure to Comply with Statutory Requirements
The Error: Not meeting the technical requirements for N12 notices.
In Chen-v-Xu-20210810, "The Landlord failed to comply with the statutory requirements for the N12 notice of termination."
Similarly, in BJ-v-AT-and-JR-T-20170616, "The N12 notice was invalid as it did not align with the fixed term lease."
The Fix:
- Provide exactly 60 days' notice (not less)
- Ensure termination date aligns with lease terms
- Include all required information and declarations
- Use the current version of the N12 form
3. Inadequate Compensation Payment
The Error: Failing to provide the required one month's rent compensation.
In wong-v-tang-20240326, "Landlord did not pay compensation required by s. 48.1 of the Act" and "Tenant's earlier N9 notice does not negate Landlord's obligation to pay compensation."
The Fix:
- Pay compensation equal to one month's rent
- Provide compensation before the termination date
- Don't assume tenant's early departure waives compensation
- Keep records of compensation payment
4. Bad Faith Evictions and Severe Penalties
The Error: Not following through on stated intentions, leading to bad faith findings.
In fataftah-v-rodriguez-20240402, "The Landlord served the Tenants with an N12 notice in bad faith, as the Landlord listed the rental unit for sale shortly after the Tenants vacated. The Landlord is ordered to pay the Tenants $10,688."
Similarly, in the-apartment-shoppe-v-pierce-20241031, "The Landlord must pay the Tenant $10,133 for increased rent and moving expenses due to the bad faith N12 notice."
The Fix:
- Actually move into the unit within a reasonable time
- Occupy the unit for at least one year as intended
- Don't list the property for sale immediately after tenant departure
- Maintain documentation of your occupancy
5. Improper Service and Timing
The Error: Serving the notice incorrectly or with insufficient time.
The Fix:
- Serve the notice at least 60 days before the termination date
- Use proper service methods (personal service preferred)
- Ensure termination date falls at the end of a rental period
- Document service method and date carefully
Step-by-Step N12 Completion Guide
Step 1: Verify Your Genuine Need
Before Serving:
- Confirm you genuinely need the unit for personal occupation
- Ensure you can occupy the unit for at least one year
- Consider whether alternative arrangements are possible
- Document your reasons for requiring the unit
Qualifying Persons:
- Landlord or landlord's spouse
- Child or spouse's child of the landlord or landlord's spouse
- Parent or spouse's parent of the landlord or landlord's spouse
- Purchaser or qualifying family member of purchaser
Step 2: Calculate Proper Timing
Notice Period:
- Minimum 60 days from service to termination
- Account for service method (mail adds 5 days)
- Ensure termination date is end of rental period
- Consider tenant's circumstances for timing
Compensation Timing:
- Must be paid before the termination date
- Cannot be offset against rent or other charges
- Should be paid separately and documented
Step 3: Complete the Form Accurately
Required Information:
- Complete tenant and property identification
- Specify which qualifying person requires the unit
- State the intended duration of occupation (minimum one year)
- Include all required declarations and signatures
Common Mistakes to Avoid:
- Incomplete or inaccurate tenant information
- Vague statements about intended use
- Missing signatures or dates
- Using outdated form versions
Step 4: Provide Proper Compensation
Compensation Requirements:
- Amount equal to one month's rent
- Paid before the termination date
- Cannot be applied to rent or other charges
- Must be actual payment, not credit or offset
Documentation:
- Keep receipts of compensation payment
- Provide written confirmation to tenant
- Maintain records for potential future proceedings
Step 5: Serve the Notice Properly
Service Methods:
- Personal service (most reliable)
- Mail to tenant's address
- Posting if other methods fail
- Email only if agreed to in lease
Documentation:
- Complete Certificate of Service
- Keep copies of all documents
- Note service date and method
- Photograph posting if applicable
Good Faith Requirements in Detail
Proving Good Faith
Strong Evidence:
- Detailed explanation of why you need the unit
- Documentation of current living arrangements
- Evidence of changed circumstances requiring the move
- Testimony from the person who will occupy the unit
Weak Evidence:
- Vague statements about "needing" the unit
- Contradictory statements about intentions
- Evidence of other motives (rent increase, sale, etc.)
- Lack of concrete plans for occupancy
Red Flags That Indicate Bad Faith
Timing Issues:
- Serving N12 shortly after tenant complaints
- Notice coinciding with rent increase attempts
- Serving multiple notices for different reasons
Contradictory Actions:
- Listing property for sale before or after serving notice
- Advertising unit for rent after tenant departure
- Making statements inconsistent with personal use
Pattern of Behavior:
- History of serving N12 notices to multiple tenants
- Previous bad faith findings
- Reputation for removing tenants for rent increases
What Happens When N12 Notices Fail
Application Dismissal
When N12 notices are found invalid:
- Application dismissed without consideration of merits
- Landlord cannot proceed with eviction
- Must serve new notice and restart process
- Wasted time and application fees
Bad Faith Penalties
When landlords act in bad faith:
- Rent Differential: Difference in rent for up to one year
- Moving Expenses: Actual costs of relocation
- General Damages: Additional compensation for inconvenience
- Application Fees: Tenant's costs for pursuing remedy
Typical Awards:
- $8,000-$12,000 for rent differential
- $1,000-$2,000 for moving expenses
- $1,000-$3,000 for general damages
- Total awards often exceed $10,000
Prevention Strategies
Before Serving N12
Self-Assessment:
- Honestly evaluate your need for the unit
- Consider whether you can commit to one year occupancy
- Assess whether other arrangements are possible
- Review your motivations for serving the notice
Documentation:
- Gather evidence supporting your need for the unit
- Document current living arrangements
- Prepare explanation of changed circumstances
- Collect supporting testimony from family members
During the Process
Maintain Consistency:
- Keep statements about intended use consistent
- Avoid actions that contradict stated intentions
- Don't discuss alternative plans with tenants
- Document all communications
Follow Through:
- Actually move into the unit as planned
- Occupy the unit for the full year minimum
- Maintain evidence of your occupancy
- Don't list or advertise the unit prematurely
Professional Guidance
Consider Consulting:
- Experienced paralegals specializing in N12 applications
- Legal counsel for complex situations
- Property management professionals
- Real estate lawyers for purchase-related N12s
Common N12 Misconceptions
"I Can Use N12 to Increase Rent"
Wrong. Using N12 notices to circumvent rent control is bad faith and results in substantial penalties.
"Compensation Can Be Applied to Rent"
Wrong. Compensation must be separate payment and cannot be offset against rent or other charges.
"I Don't Need to Actually Move In"
Wrong. You must genuinely occupy the unit for at least one year or face bad faith penalties.
"Tenant's Early Departure Waives Compensation"
Wrong. Compensation is required regardless of when the tenant actually leaves.
Conclusion
The N12 notice is a powerful tool for landlords who genuinely need their rental units for personal use, but it's also a high-risk procedure that demands absolute honesty and strict compliance with legal requirements. The good faith standard is rigorously enforced, and the penalties for bad faith evictions are severe.
Success with N12 notices requires genuine intention, meticulous attention to procedural requirements, proper compensation payment, and actual follow-through on stated intentions. The LTB and courts have little tolerance for landlords who abuse the N12 process, and the financial consequences can be devastating.
Before serving an N12 notice, honestly assess whether you genuinely need the unit for personal use and can commit to occupying it for at least one year. If the answer is yes, follow every procedural requirement precisely and be prepared to prove your good faith at the hearing.
Remember that tenants have up to one year after vacating to challenge N12 notices for bad faith. Even after a successful eviction, landlords remain at risk if they don't follow through on their stated intentions. The best protection against bad faith claims is genuine good faith from the outset.
In Ontario's rental market, the N12 notice represents the intersection of property rights and tenant protection. Used properly by landlords with genuine need, it serves its intended purpose. Used improperly, it becomes a costly mistake that can result in penalties far exceeding any potential benefit.
The choice is clear: use N12 notices only when you genuinely need the unit for personal use, follow every requirement precisely, and be prepared to live with the consequences of your stated intentions.
